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‘This is a balanced bill. We have protected the creative aspects and the element of gaming — be it social games or esports,’ S Krishnan, secretary at MeitY.
India’s gaming industry has seen rapid growth in recent years, attracting billions in investment and hundreds of millions of users.
The government’s proposed bill to ban real-money online gaming is a “balanced” measure designed to protect users while giving regulatory clarity to the industry, according to a top official.
“This is a balanced bill. We have protected the creative aspects and the element of gaming — be it social games or esports,” S Krishnan, secretary at the Ministry of Electronics and Information Technology (MeitY), told Moneycontrol.
The Promotion and Regulation of Online Gaming Bill, 2025, cleared by the Union Cabinet on August 19, was introduced in the Lok Sabha on Wednesday.
According to the bill, it will be prohibited to offer, aid, abet or induce any online money games or services. An “online money game” is defined as one played with a fee, deposit, or stake in the expectation of winning monetary rewards, regardless of whether it is a game of skill or chance.
India’s gaming industry has seen rapid growth in recent years, attracting billions in investment and hundreds of millions of users. However, this rise has also led to concerns around addiction, financial distress, and debt cycles among lower-income groups.
Krishnan told Moneycontrol that the proposed law addresses the industry’s own demand for regulatory clarity. “The industry itself sought clarity — and we have provided it. Gaming is not a monolithic industry. This bill puts all other AVGC (Animation, Visual Effects, Gaming, and Comics) games in clear light,” he said.
Importantly, he clarified that the legislation does not penalise players but places accountability on platforms. “There is no criminalisation of players. We have only set rules for the platforms providing these money games,” he said.
On concerns about enforcement — particularly curbing offshore operators and users accessing banned platforms via VPNs — Krishnan acknowledged challenges but insisted the government is “fully prepared” to deal with them.
“We fully understand that there will be technical and implementation challenges with respect to offshore gaming platforms, VPNs,” he told Moneycontrol. “We are fully prepared to fight it.”
Meanwhile, industry associations have sounded alarm over the proposed legislation. In a joint letter to Home Minister Amit Shah, three leading bodies — the All India Gaming Federation (AIGF), the E-Gaming Federation (EGF) and the Federation of Indian Fantasy Sports (FIFS) — warned that a blanket ban would “strike a death knell” for India’s legitimate online skill gaming industry, endanger over 200,000 jobs, and push players towards unregulated offshore platforms.
The associations, representing companies such as Dream11, Games24x7, Mobile Premier League (MPL), Nazara Technologies, Zupee, and Head Digital Works, argued that the move would undermine Prime Minister Narendra Modi’s $1 trillion digital economy vision.
They highlighted that the sector has generated more than Rs 31,000 crore in revenues, contributed over Rs 20,000 crore annually in direct and indirect taxes, and is expected to grow at a 20% CAGR to double in size by 2028. India’s overall gaming industry, driven largely by real-money gaming apps, is projected to cross $9.2 billion in revenue by FY29.
The industry includes three unicorns — Dream11, Games24x7 and MPL — and is one of the few digital segments in India with multiple profitable companies.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
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